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Construction Giant Admits Fraud Over Minority Firms By WILLIAM K. RASHBAUM A heavy construction company that has been involved in some of New York’s biggest infrastructure projects admitted on Monday that it had defrauded government programs for five years, and agreed to forfeit $20 million for crimes it committed while performing $691 million in public contracts. The business, Schiavone Construction Company, L.L.C., signed a nonprosecution agreement with the office of the Brooklyn United States attorney, Loretta E. Lynch, and agreed to the payment to avoid criminal charges. In the agreement, it admits committing wire fraud and evading requirements on federally financed projects that it hire a certain percentage of minority- or women-owned subcontractors or those certified by government agencies as disadvantaged. The projects at the center of the fraud, according to the agreement, were the city’s $2.8 billion Croton Water Treatment Plant, the $90 million rehabilitation of the Times Square subway station and $261 million in work on the South Ferry subway station. The water treatment plant, which has not been completed, is being built by the New York City Department of Environmental Protection, and the subway work was performed for the Metropolitan Transportation Authority. Read more at www.nytimes.com

 

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